State RegulationsGA specificDifficulty 3/5
O.C.G.A. § 33-24-6.1 establishes the prerequisites a producer must satisfy before soliciting certain new life coverage. In which situation do these replacement prerequisites apply?
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Answer & full 3-part explanation (select an option above, or peek)
Why A is correct
Under O.C.G.A. § 33-24-6.1, the statutory prerequisites govern proposals for new life insurance where the new coverage exceeds the insurance being surrendered — in other words, where the applicant is adding coverage while dropping or reducing old coverage. This is exactly the situation in which the applicant is most exposed to an unsuitable replacement, so the statute requires disclosure, comparison, and documentation before the transaction proceeds.
Why the other options are wrong
- B) A lower premium is not the statutory trigger; the prerequisites key to the new coverage exceeding the insurance being surrendered.
- C) The prerequisites apply to replacement proposals regardless of whether the same insurer issues the new policy.
- D) A change in the applicant's health is not the trigger; the statute keys on the relationship between new and surrendered coverage.
Memory hook
More new coverage than old coverage surrendered? Replacement prerequisites kick in.